This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Labels & Publishers
Responses to the proposed new settlement on the US mechanical royalty rate on discs and downloads
By CMU Editorial | Published on Friday 6 May 2022
Reactions to the new proposed settlement regarding the mechanical royalty rate paid to music publishers and songwriters in the US from the sale of discs and downloads – aka the phonorecords IV subpart B settlement that was submitted yesterday to the US Copyright Royalty Board. This debate around what rate should be paid on discs and downloads is running alongside the separate debate before the CRB on what mechanical royalty rate should be paid by streaming services.
David Israelite, CEO at the National Music Publishers Association: “This new settlement gives songwriters a 32% raise on sales of vinyl, CDs and downloads – raising the rate from 9.1 cents to 12 cents – and critically also includes a yearly cost of living adjustment to address inflation. This extremely positive result is due in large part to the creators who made their voices heard in the CRB process. With this settlement filed, we clear the way to focus solely and tirelessly on raising streaming rates. As we battle the biggest companies in the world, who are pushing for the lowest royalty rates in history, songwriters and their advocates stand more united than ever”.
Mitch Glazer, CEO at Recording Industry Association Of America: “After wide consultation with songwriters, publishers, and labels, we are glad to have reached a solution we believe addresses the core concerns of the CRB judges and the individuals and organisations who shared their views during this proceeding. As a music community, we are strongest when we come together to forge lasting and sustainable win-win deals”.
Michelle Lewis, Executive Director at Songwriters Of North America: “SONA enthusiastically supports the proposed phonorecords IV subpart B settlement, which controls how much songwriters and publishers are paid for digital permanent downloads, vinyl and CD sales. Big or small, all songwriters should always have a voice in the decisions that govern and affect our livelihood. We are grateful that our collective voice has been heard. This is a long overdue step in correcting the low rates historically paid to songwriters and it’s about time a song’s inherent value is properly recognised”.
Bart Herbison, Executive Director at Nashville Songwriters Association International: “We want to thank the CRB for signaling an opportunity for an increase on physical rates. The 32% increase on CDs, vinyl and downloads is welcome and the fact that the cost of living adjustment is built in helps us maintain increases in the future”.
Association Of Independent Music Publishers: “The AIMP fully endorses the proposed CRB subpart B settlement, which would increase the mechanical rate for physical sales and digital downloads from 9.1 cents to 12 cents. This is a step in the right direction and will be a significant boon for the independent music publishing community. Moving forward, nearly all independent publishers will tell you that the future of the music business is in streaming, and we applaud the continued efforts of the NMPA to fight for better streaming rates for all independent music publishers and songwriters”.
Harvey Mason Jr, CEO at the Recording Academy: “I want to applaud the NMPA and RIAA for working together to act in the best interest of songwriters. This settlement demonstrates that when the music community acts collaboratively, we can achieve meaningful progress for music creators”.
Graham Davies, Chief Executive at the Ivors Academy: “The Ivors Academy of UK songwriters and composers welcomes the news that the value of songwriting and publishing rights are beginning to be better recognised. This is an important settlement and indicates the necessary direction of travel.” –
Brittain Ashford, Executive Director at the Music Publishers Association Of The United States: “This unprecedented rate increase for vinyl, CDs and downloads will have a significant impact on our industry and hopefully points to potentially higher rates for streaming from the CRB. We appreciate the efforts to come to this agreement and thank NMPA for working on behalf of songwriters and publishers”.
Susan Genco, Board Member at the Music Artists Coalition: “Music Artists Coalition applauds and endorses the proposed CRB settlement which gives songwriters a much-deserved raise on physical sales and downloads. The songwriting community has successfully advocated for this rate adjustment and will continue fight for an increase where it really matters – streaming. Finally some good news for music creators!”
Prophet, Co-Founder/Co-Chair of the Black Music Action Coalition: “BMAC supports the proposed phonorecords IV subpart B settlement. Our organisation applauds the negotiators for proposing to increase payment for artists by 33%, and we are particularly happy to see the acknowledgments of cost of living adjustments for songwriters. As we recognise there’s still much more to be done, we must acknowledge each step made in the right direction towards equality for the songwriter”.
Don Cason, CEO at the Church Music Publishers Association: “We are very pleased with the 32% increase included in the Subpart B settlement negotiated by the NMPA. Songwriters are in great need of better rates that more fully reflect their contributions. We hope that the CRB will recognise this in the larger streaming fight happening this year and that this bodes well for things to come”.
Adam Taylor, Chairman at the Production Music Association: “This new settlement is a massive step forward for all composers and songwriters and will be of great benefit to many thousands of production music creators whose also works are offered for sale to the public through CDs, vinyl and digital platforms. We thank the NMPA for negotiating a 32% raise and continuing to fight for higher, fairer streaming rates in the CRB this fall”.
Tiffany Red, Founder and Executive Director of The 100 Percenters: “With the sale of vinyl and CDs continuing to rise, songwriters getting a royalty increase shows that labels are beginning to see that we deserve better rates. We hope that with the impending CRB trial, all parties will try to work together so that songwriters can get closer to having a livable wage”.
Artist Rights Alliance: “This settlement is a meaningful win for songwriters who will see a 33% jump in royalties for physical music sales and downloads starting in 2023 while locking in future increases to keep up with inflation for the life of the deal. We are so grateful to the many grassroots songwriter advocates who refused to accept a status quo settlement and kept banging on the door of the CRB until they were heard”.
